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Itochu Corporation Unsponsored ADR (ITOCY)
OTHER OTC:ITOCY
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Itochu
(OTC:ITOCY)
Rating:77Outperform
Price Target:―
Itochu (ITOCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$79.75B
Dividend Yield1.95%
Average Volume (3M)2.25K
Price to Earnings (P/E)12.3
Beta (1Y)0.54
Revenue Growth2.50%
EPS Growth22.24%
CountryUS
Employees113,733
SectorIndustrials
Sector Strength78
IndustryConglomerates
Share Statistics
EPS (TTM)2.71
Shares Outstanding792,445,000
10 Day Avg. Volume4,275
30 Day Avg. Volume2,253
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.05
Enterprise Value/Ebitda0.08
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Itochu Business Overview & Revenue Model
Company DescriptionITOCHU Corporation engages in trading and importing/exporting various products worldwide. The company's Textile segment produces and sells fiber and garment materials, textiles fabrics, apparel, and industrial materials; and imports lifestyle brands, fashion accessories, and garments in various areas, such as luxury, casual, and sports. Its Machinery segment provides engineering, procurement, and construction services; operates water and environmental, infrastructure, renewable energy, oil and gas, petrochemical, and independent power producer projects and plants; sells and leases aircraft and related equipment; sells automobiles, construction machinery, electronic systems, industrial machinery, and medical devices; and owns and charters ships. The company's Metals & Minerals segment engages in mining and trading of iron ore, coal, uranium, base metals, and minor metals; trading in non-ferrous metal materials; and processing and trading in steel products. Its Energy & Chemicals segment trades in crude oil, petroleum products, LPG, LNG, natural gas, hydrogen, organic and inorganic chemicals, synthetic resins, household goods, fine chemicals, pharmaceuticals, and electronic materials, as well as generates and trades in power. The company's Food segment produces, distributes, and retails food products. Its General Products & Realty segment produces and sells paper, pulp, natural rubber, tire, and wood products and materials; develops and operates real estate properties, such as housing, logistics facilities, and other projects; and offers logistics services. The company's ICT & Financial Business segment offers IT solutions, Internet related and venture capital services, mobile telephone equipment and services, BPO, broadcasting and communications, entertainment and content services, outsourcing services for healthcare and preventive medicine, and financial and insurance brokerage services. The company was founded in 1858 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyItochu Corporation generates revenue through its diversified operations across multiple sectors. The company's revenue streams are primarily derived from trading and distributing goods, investing in various industries, and providing comprehensive supply chain solutions. Key revenue streams include the sale of textiles, machinery, metals, energy products, and food commodities. Additionally, Itochu benefits from strategic partnerships and joint ventures that enhance its global reach and market presence. The company's investments in energy and natural resources, as well as its involvement in real estate and infrastructure projects, further contribute to its earnings. Itochu leverages its extensive network and expertise in logistics to optimize supply chains, thereby adding value to its trading operations.
Itochu Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: 6.37%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several positive developments, including an increase in consolidated net profit and record-setting cash flows, alongside strong performances in specific sectors like Textile and Food. However, challenges such as declines in Metals & Minerals and Energy & Chemicals profits were noted. Despite these challenges, the overall sentiment is positive due to the significant gains and strategic investments being made.Q2-2025 Updates
Positive Updates
Increase in Consolidated Net Profit
Consolidated net profit increased by 6% or ¥25.5 billion year-on-year to ¥438.4 billion, achieving 50% of the annual forecast.
Strong Core Operating Cash Flows
Core operating cash flows exceeded ¥500 billion for the first time in a half-year result, reaching ¥513 billion, setting an all-time high.
Textile and Food Sector Growth
Textile, Food, and other sectors saw an increase in profit, with Textile driven by inbound consumption and stable performance in sports, and Food benefiting from a turnaround in the pork business.
Record Operating Cash Flows
Operating cash flows reached ¥578.6 billion, setting the record high, driven by stable performance from operating revenues and dividends received.
Increase in Shareholder Returns
For FYE 2025, the total payout ratio is aimed at 50%, with a dividend per share of ¥200, an increase of ¥40 from the previous year, marking the 10th consecutive year of dividend increases.
Negative Updates
Decline in Metals & Minerals Profit
Metals & Minerals saw a decrease in profit despite increased dividends from Brazilian iron ore business due to deteriorating profitability in Marubeni Itochu Steel's North American business.
Energy & Chemicals Profit Decrease
Profit in Energy & Chemicals decreased significantly due to the absence of large extraordinary gain from the previous fiscal year's power and environmental solution.
General Products & Realty Profit Decline
Profit was down in General Products & Realty due to the decrease in North American construction materials business affected by higher costs and market downturn.
Company Guidance
In the call, Itochu Corporation's President, Keita Ishii, provided guidance on various financial metrics for the first half of FYE2025. The consolidated net profit increased by 6% year-on-year to ¥438.4 billion, achieving 50% of the annual forecast. Core profit reached ¥396 billion, marking the second-highest profit level after FYE2023, with a 3% year-on-year growth across sectors including Textile, Chemicals, and Food. Core operating cash flows exceeded ¥500 billion for the first time in a half-year, reaching ¥513 billion, setting an all-time high. The overall annual forecast remains unchanged at ¥880 billion, despite revisions in sector forecasts: Textile is expected to increase by ¥40 billion, while Metals & Minerals are revised down by ¥40 billion. Total shareholders' equity rose by ¥170 billion to ¥5.6 trillion, and the company plans to maintain a total payout ratio of 50%, with a dividend per share of ¥200 and the largest-ever share buybacks of ¥150 billion.Itochu Financial Statement Overview
Summary
Itochu demonstrates strong financial health and operational efficiency. The company shows consistent revenue growth and profitability, supported by a stable balance sheet and robust cash flow generation. While leverage is moderate, the company effectively utilizes its equity to generate returns. Continued focus on operational efficiency and capital management would sustain its strong financial position.Income Statement
Itochu shows strong financial performance with a healthy revenue growth rate of 3.69% TTM. The gross profit margin is solid at 16.02%, and the net profit margin stands at a commendable 5.69%. EBIT and EBITDA margins are robust at 4.94% and 8.72% respectively, indicating efficient operations and profitability. However, slight pressure on EBITDA margin compared to EBIT margin suggests potential operational cost considerations.85
Very Positive
Balance Sheet
The balance sheet is stable with an equity ratio of 38.88%, reflecting a strong capital base. The debt-to-equity ratio is 0.62, indicating moderate leverage, which is manageable but should be monitored. Return on equity is impressive at 14.79%, showing effective utilization of shareholder funds.78
Positive
Cash Flow
Itochu's cash flow is strong with a significant free cash flow growth rate of 15.36%. The operating cash flow to net income ratio is 1.31, indicating healthy cash generation relative to net income. The free cash flow to net income ratio is 1.08, underscoring the company's ability to convert earnings into free cash flow.82
Very Positive
| Breakdown | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.03T | 13.95T | 12.29T | 10.36T | 10.98T |
| Gross Profit | 2.23T | 2.13T | 1.94T | 1.78T | 1.80T |
| EBITDA | 1.29T | 1.25T | 1.28T | 968.57B | 1.18T |
| Net Income | 801.77B | 800.52B | 820.27B | 401.43B | 501.32B |
Balance Sheet | |||||
| Total Assets | 14.49T | 13.11T | 12.15T | 11.18T | 10.92T |
| Cash, Cash Equivalents and Short-Term Investments | 689.06B | 688.80B | 724.83B | 598.88B | 665.40B |
| Total Debt | 4.40T | 4.01T | 3.92T | 4.22T | 4.06T |
| Total Liabilities | 8.50T | 7.65T | 7.39T | 7.31T | 7.08T |
| Stockholders Equity | 5.43T | 4.82T | 4.20T | 3.32T | 3.00T |
Cash Flow | |||||
| Free Cash Flow | 775.56B | 743.98B | 644.02B | 730.88B | 678.61B |
| Operating Cash Flow | 978.11B | 938.06B | 801.16B | 895.90B | 878.13B |
| Investing Cash Flow | -205.99B | -453.81B | 38.64B | -207.30B | -248.77B |
| Financing Cash Flow | -413.33B | -500.08B | -846.71B | -728.77B | -575.48B |
Itochu Technical Analysis
Positive
112.13
Price Trends
104.89
Positive
101.80
Positive
98.50
Positive
Market Momentum
1.60
Negative
64.83
Neutral
91.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITOCY, the sentiment is Positive. The current price of 112.13 is above the 20-day moving average (MA) of 107.37, above the 50-day MA of 104.89, and above the 200-day MA of 98.50, indicating a bullish trend. The MACD of 1.60 indicates Negative momentum. The RSI at 64.83 is Neutral, neither overbought nor oversold. The STOCH value of 91.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITOCY.
Itochu Peers Comparison
Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $79.75B | 12.26 | 17.06% | 1.95% | 2.50% | 22.24% | |
71 Outperform | ¥269.12B | 15.13 | 8.31% | 2.76% | 6.08% | 11.04% | |
68 Neutral | $137.63B | 24.64 | 34.60% | 2.09% | 7.16% | 0.21% | |
58 Neutral | $81.42B | 21.26 | 96.00% | 1.85% | -19.56% | 325.26% |
* Industrials Sector Average
Performance Comparison
ITOCY
Itochu
112.13
14.75
15.15%
MMM
3M
154.34
27.73
21.90%
HON
Honeywell International
216.74
19.42
9.84%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.